Mortgage Myths: Here’s Why You Don’t Need a Full 20 Percent Down Payment

If you’re just getting into the real estate market, you may have heard that 20% down is the ideal percentage in order to lower your monthly payments and get your mortgage application approved. However, while 20% is often suggested, many people struggle to come up with this amount of money. If you’re staving off home ownership, here are some reasons you may not need to hold off as you long as you thought.

Minimizing Your Insurance Costs

Putting down 20% of the total purchase price of your home is often suggested, but it doesn’t definitively mean that your application won’t be approved if you don’t. If you have a good credit score and are in good financial standing, putting less than 20% down means you’ll have to pay Private Mortgage Insurance (PMI); however, it can be worth paying the extra funds in order to get into the real estate market sooner and start paying into your most significant investment.

Mortgage Programs For Less Than 20%

It may seem less possible to buy a home if you only have 5 or 7% of the purchase price, but there are many programs in the United States that enable those with limited funds to apply for a mortgage. From the Federal Housing Administration (FHA) to Fannie Mae and Freddie Mac, there are many lenders that can offer you mortgage programs that will work for your situation. While higher rates come in tandem with a lower down payment, there are options out there for those who haven’t saved quite enough.

Why Put Down 20%?

Putting down 20% is not a necessity for mortgage approval or purchasing a home, but it can be a great means of saving money in the long run and reducing your interest rates. If you’re raring to get into the real estate market and don’t want to wait for the bills to stack up, that’s OK, but if you want to hold off and save up additional funds before diving in, this can mean more money and a more solid investment in the future.

The magic number is often 20% when it comes to a down payment on a home, but you don’t require this percentage of your home’s price in order to get approved for a mortgage. If you’re currently considering diving into home ownership and would like to know more about the opportunities in your area, give me a call – J.P. Cook – 602-320-4253.

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24275 N 160th Avenue Surprise, AZ 85387

$649,900

5 Beds

4.5 Baths

3,444 SqFt

Status Active

MLS # 6764923

Property Type Single Family Residence

Price Type --

MOVE IN READY, BRIGHT GREAT ROOM PLAN , QUICK CLOSE!! 5 BEDROOM PLUS LOFT, 4.5 BATH , 3 CAR GARAGE 9'CEILINGS, GOURMET KITCHEN LAYOUT, UPGRADE CABINETS , QUARTEZ KITCHEN TOPS, SPA SHOWER IN MASTER BATH, LUXURY VINYL FLOORING. 2'WHITE BLINDS, CEILING FANS, FRONT YARD LANSCAPING COMPLETED, ENERGY STAR QUALIFIED HOME, INDOOR AIR PLUS. A SHORT DISTANCE FROM THE COMMUNITY POOL AREA, PICNIC AREA, TOT LOTS, BASKETBALL, PICKLE BALL COURTSAND SO MUCH MORE.

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8301 W Escuda Drive Peoria, AZ 85382

$649,900

3 Beds

2 Baths

2,307 SqFt

Status Active Under Contract

MLS # 6772531

Property Type Single Family Residence

Price Type --

This gorgeous single-level home in a peaceful cul-de-sac is the one for you! Enter through the custom double doors to find a living room that beckons you to unwind and a formal dining room ready to hold special occasions. The kitchen is equipped with built-in appliances, granite counters, a center island, a breakfast bar, and a breakfast nook perfect for casual dining. The primary bedroom boasts direct outdoor access, an ensuite with dual sinks, a walk-in shower, and a huge closet. Venture outside to discover a sizeable low-maintenance backyard with a covered patio, hot tub, and a refreshing pool. This community includes restaurants, AWARD WINNING golf courses, Activity Center, library, pickleball courts and exercise facility to name a few. Join some clubs and watch your calendar fill up!

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15045 N 20th Place Phoenix, AZ 85022

$649,900

3 Beds

2 Baths

1,537 SqFt

Status Active

MLS # 6776568

Property Type Single Family Residence

Price Type --

welcome to this gem in the desert overlooking the city with stunning mountain views. rare remodeled from top to bottom and professionally designed home with attention to detail. home is also available for rent or lease purchase. owner agent with fast answers.

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3540 N Sonoran Hills Mesa, AZ 85207

$649,900

5 Beds

3 Baths

2,475 SqFt

Status Active

MLS # 6780637

Property Type Single Family Residence

Price Type --

Experience upscale living in an award-winning gated community offering an extensive list of amenities such as pickleball & tennis courts, a beautiful boutique-style spa & fitness center, numerous parks & trails, and a world-class golf course. This gorgeous 5-bedroom home features vaulted ceilings, abundant natural light, and spacious kitchen with center island and SS appliances. With an open layout, neutral color palette, and modern finishes, this home gives off a refined sophistication. Retreat upstairs to your luxurious primary suite with covered walk-out balcony to enjoy the beautiful Arizona sunsets. With one bedroom and full bath on first floor and 3 additional bedrooms on the second floor, this home is flexible and functional, as well as elegant. 2021: New laminate wood flooring in upstairs hallway, master bedroom and upstairs south-facing bedroom; kitchen water filtration system installed; new range, refrigerator, and washer/dryer. 2023: UV safe tint on Western facing windows; new dishwasher and microwave.

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349 E Atlantic Drive Casa Grande, AZ 85122

$649,900

6 Beds

3.5 Baths

2,671 SqFt

Status Active

MLS # 6780941

Property Type Single Family Residence

Price Type --

This impressive FULTON home boasts a full basement and solar panels, nestled in a resort-style lake community on over a quarter-acre lot. The residence includes four bedrooms and 2.5 bathrooms in the main living area, as well as two additional bedrooms, a full bathroom, and a bonus room in the basement. Evident pride of ownership shines throughout the property. Updates include new flooring in 2023 and a new gas stove. The backyard is an oasis with lush fruit trees, a built-in BBQ, and ample space for a potential pool.

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14200 W Village Parkway Unit 2254 Litchfield Park, AZ 85340

$649,900

2 Beds

2 Baths

1,723 SqFt

Status Active

MLS # 6781698

Property Type Townhouse

Price Type --

Ready to tee off into the ultimate lifestyle? Cachet at the Wigwam offers an unbeatable value, perfectly located on the 10th hole of the Red Course with stunning golf course views. Step inside to find elegant flooring, soft neutral tones, and a versatile den that offers endless possibilities. The stylish kitchen features large cabinets with crown molding, a tile backsplash, quartz countertops, matching appliances, and a breakfast bar. The primary suite includes a tiled shower, dual sinks, and a spacious walk-in closet. Unwind on the covered patio, taking in the beautiful Arizona evenings under the firepit and breathtaking scenery. Fantastic amenities include a pool, clubhouse, and fitness center. This is AZ outdoor/indoor living at its finest!

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2474 E Westchester Drive Chandler, AZ 85249

$649,900

4 Beds

2.5 Baths

2,884 SqFt

Status Active

MLS # 6782548

Property Type Single Family Residence

Price Type --

LOCATION LOCATION LOCATION! SELLER SPENT $$$$$$ TO REMODEL THE HOUSE, VERY CLEAN AND NICE AND THE BEST QUITE NEIGHBORHOOD

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937 N Vale Street Mesa, AZ 85201

$649,900

4 Beds

3 Baths

3,227 SqFt

Status Active Under Contract

MLS # 6782626

Property Type Single Family Residence

Price Type --

This expansive 3,227 sq ft ranch-style home sits on a generous 17,960 sq ft lot, offering the perfect blend of indoor and outdoor living. Located just minutes from Arizona State University (ASU), Old Town Scottsdale, Sloan Park (home of the Chicago Cubs), and Sky Harbor Airport, you'll enjoy the convenience of being close to great shopping, dining, and entertainment, with easy access to the 202 and 101 freeways. The home features 4 spacious bedrooms and 2.5 bathrooms, with a den that includes custom built-in cabinets. The family room is warm and inviting, centered around a cozy brick fireplace—a perfect spot for family gatherings. The formal dining room boasts elegant wood floors, while the living room features built-in cabinets, adding both character and functionality to the space. Outside, the large private backyard is a true retreat. Enjoy the inviting pool, complete with a custom hydraulic pool cover and a shade structure, making it perfect for relaxing or entertaining. There's also an outdoor shed for additional storage, ideal for tools or gardening supplies. The Arizona Room, with windows that open to the outdoors, brings in plenty of natural light, further enhancing the home's seamless connection to its serene surroundings. This property is an exceptional find, offering ample space, comfort, and a highly sought-after locationperfect for those who want to experience the best of Mesa's living with a private backyard oasis.

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16036 W Sandia Park Drive Surprise, AZ 85374

$649,900

2 Beds

2 Baths

2,273 SqFt

Status Active

MLS # 6733325

Property Type Single Family Residence

Price Type --

Beautifully remodeled Windrose model with too many updates to list here. Triple garage and large fenced yard. Very modern colors with floating custom media wall. Vinyl flooring, granite counter tops, newer Stainless appliances, under cabinet kitchen lighting, inside laundry, pavers and cool decking on the back patio and fenced front courtyard. HVAC system replaced in 2018. Outside painted recently; newer PVC irrigation with drip system and new control box. Newer sinks, lighting and painted cabinets throughout - plus so much more.

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11910 E Amanda Road Gold Canyon, AZ 85118

$649,900

3 Beds

2 Baths

1,987 SqFt

Status Active

MLS # 6753721

Property Type Single Family Residence

Price Type --

A MUST SEE Home in Gold Canyon. Photos don't do justice to this charming 3 bedroom 2 bathroom newer home located in Gold Canyon. Enjoy your time on the front patio morning or night. Inside you will find the 2 additional bedrooms (one with murphy bed) to the right and office to the left. Continuing, the beautiful tile floor leads you into a spacious entertainers kitchen. Kitchen features stainless steel appliances, wall ovens, quartz counter tops, island and dark cabinets. Kitchen opens up to family room which has stunning views. Main bedroom is located off of the family room in the back of the house. Backyard features artificial turf, easy to maintain landscaping and a great space to host!

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4497 S Watauga Drive Gilbert, AZ 85297

$649,900

3 Beds

2 Baths

2,324 SqFt

Status Active

MLS # 6785256

Property Type Single Family Residence

Price Type --

Pride of ownership shines through in one of Gilbert's most sought-after communities! This split floorplan truly appeals to everyone—and I mean everyone. With tile flooring throughout and abundant storage, this home sits proudly on a corner lot, offering an extended covered patio, mature trees, and a ready-to-plant garden. Inside, the open kitchen invites you to entertain, with ample space for gatherings big and small. The centrally located den adds versatility, perfect for a game room or home office. This home is a must-see for those ready to embrace both comfort and community!

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18412 N 48th Place Scottsdale, AZ 85254

$649,900

3 Beds

2 Baths

1,659 SqFt

Status Active

MLS # 6786173

Property Type Single Family Residence

Price Type --

Welcome to Belmont at Triple Crown! This perfect 3-bedroom, 2-bath home offers a convenient lifestyle in the heart of a desirable gated community. Step into a spacious, open-concept floor plan perfect for entertaining with natural light that highlights every room. Enjoy Arizona's sunny days and beautiful evenings by the private pool, ideal for relaxation listening to the fountain or hosting poolside get-togethers .Resort-Style Amenities: Take advantage of the community pool, spa, fitness center, and clubhouse—all just steps away within this exclusive 85254 neighborhood. Prime Location: Located in Scottsdale, close to top-rated schools, shopping, dining, and more.

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